Oil prices fall in first monthly decline since November
28 February 2025 12:44
Oil is falling in price on Friday, the first monthly drop since November, "Komersant Ukrainian" reports citing Reuters. The reason is the uncertainty of the markets about the global economy and demand for fuel due to the US tariff threats and signs of a slowdown in the US economy.
Thus, May Brent futures fell 59 cents (0.8%) to $72.98 per barrel. U.S. WTI crude fell to $69.70, down 65 cents (0.9%). Both indicators show the first monthly drop in the last three months.
The market is being pressured by expectations of a slowdown in the US economy, new tariffs, OPEC’s plans to increase production in April, and the possible prospect of peace in Ukraine, which could bring more Russian oil back to the market.
“The only thing that can be said in defense of prices is that they have already fallen a lot,”
– said Tony Sikemore, market analyst at IG. According to him, WTI has good support in the range of $65-70.
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Trump announced that starting March 4 he will impose a 25% tariff on goods from Mexico and Canada and an additional 10% on Chinese imports.
BMI economists say that it is difficult for the market to assess the impact of all the Trump administration’s energy initiatives this month, but “so far, the factors that are pulling prices down, especially the US duties, are winning.”
Nevertheless, on Thursday, oil jumped 2% after Trump canceled Chevron’s license to operate in Venezuela, which could lead to the redirection of Venezuelan oil to markets other than the United States.
Meanwhile, OPEC is discussing whether to increase production in April as planned or to freeze it due to the difficult market situation.
